Business
Policy
- A sound policy of macro-economic stability is needed to attract domestic and foreign
fixed investments by continued deficit reduction, low inflati On and reduction in debt
- A growing private sector must be seen as the primary engine for creating wealth and jobs
- Privatisation as an urgent priority and well-targeted public investment
- An open market that permits free competition and prohibits monopolies from dominating
any one sector is essential
- Effective deracialisation of patterns of ownership and control is needed in addition to
speeding up the process of upward mobility through focused education and training
- A labour-market policy that has lower wages for young learners in the formal sector
- A system of acceptable minimum labour standards that combines improved standards with
productivity end performance
- Manager efficiency must be increased and low trade barriers and incentives are required
to nurture new business initiatives
- Groups suffering particularly from unemployment (black youth and rural women) should
have access to special training, exemptions from regulations and special treatment in
collective labour agreements
- A public works programme within budget constraints should be set up to establish
local-level projects with the objective of transferring skills
- Free collective bargaining should be promoted as the primary regulator of labour-market
rules
- Government must continue with the macro-economic strategy:that creates an environment of
stability and growth
- The tax burden must be contained
- Efficiency in the use of tax funds must be increased
- Privatisation of state assets must continue as it increases private investment and
efficiency
Programmes
- A comprehensive business initiative that focuses initially on tourism and education
which has the potential to create new short-term and long-term jobs
- The Business Initiative was launched in mid-September by the South Africa Foundation,
the Black Business Council and the National Business Initiative. Its primary aim is to
make a decisive contribution to job creation and human capacity development. It will be
contr oHed and managed by the private sector and support the tourism and schooling
promotion initiatives
- Tourism initiatives win have a spin-offeffect on job creation in small businesses and
other sectors, including transport, the environment, security and infrastructure
- Learnership programmes for the tourism industry should be set up with the potential of
up to 5 000 people trained in the first year
- Business against crime initiatives are needed to support the tourism initiative
- Business participation in projects which win improve the quality, effectiveness and
efficiency of the schooling system
- Schooling initiatives, including steps to reduce the repeater rate, further expansion of
education and training systems and enhancement of the management of schools
- A banking pilot project for business loans between Rio 000 and R50 0.00 and support self
ices to small businesses should be set up
- A special focus on youth employment could be facilitated through structured learning and
workplace experience with a learnership allowance
- Youth internship programmes could be set up for vacation employment in occasional jobs
to introduce youth to the workplace and provide supplementary cash income
- Accelerated housing delivery through Project Gateway by extending the financing of
lowcost housing should be established
Financing
- The following are suggestions for funding the tourism initiative, which expects at least
R1-billion to begin the fund
- Setting up a trust with voluntary contributions
- Companies listed on the Johannesburg Stock Exchange could be asked to contribute 0,15%
of their total market capitalisation
- Private companies would be asked to donate at least 2% of their after-tax earnings
- The housing and micro lender initiatives are funded through business (banking) and
government partnerships
Sources: Prospectus 198/09/291, The Job Summit, Business South
Africaproposals towards an agenda [98/09/21/, and Submission by Business South Africa:
Drovisional brief /98/08/061